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8682A 



Bureau of Mines Information Circular/1976 



Basic Estimated Capital Investment 
and Operating Costs for Underground 
Bituminous Coal Mines 

Mines With Annual Production of 1.06 to 4.99 
Million Tons From a 72-Inch Coalbed 

Revision of Information Circular 8632 



fcWTO^ 




UNITED STATES DEPARTMENT OF THE INTERIOR 



Information Circular 8682A 

Basic Estimated Capital Investment 
and Operating Costs for Underground 
Bituminous Coal Mines 

Mines With Annual Production of 1.06 to 4.99 
Million Tons From a 72-Inch Coalbed 

Revision of Information Circular 8632 



By Sidney Katell, E. L. Hemingway, and L.JH. Berkshire 
Process Evaluation Group— MMRD, Morgantown, W. Va. 



UNITED STATES DEPARTMENT OF THE INTERIOR 

Thomas S. Kleppe, Secretary 

BUREAU OF MINES 
Thomas V. Falkie, Director 



As the Nation's principa] conservation agency, the Department of the Interior 
has responsibility for most of our nationally owned public lands and natural 
resources. This includes fostering the wisest use of our land and water re- 
sources, protecting our fish and wildlife, preserving the environmental and 
cultural values of our national parks and historical places, and providing for 
the enjoyment of life through outdoor recreation. The Department assesses 
our energy and mineral resources and works to assure that their development is 
in the best interests of all our people. The Department also has a major re- 
sponsibility for American Indian reservation communities and for people who 
live in Island Territories under U.S. administration. 



l^i 



■Ui 




This publication has been cataloged as follows: 



Katell, Sidney 

Basic estimated capital investment and operating costs 
for underground bituminous coal mines: mines with annual 
production of 1.06 to 4.99 million tons from a 72-inch coal-, 
bed, by Sidney Katell, E. L. Hemingway, and L. H. 
Berkshire. [Washington] U.S. Bureau of Mines [1976] 

41 p. illus., tables. (U.S. Bureau of Mines. Information circu- 
lar 8682A) 

Revision of information circular 8632. 

1, Bituminous coal— Costs. 2. Coal mines and mining— United 
States— Cost of operation. L U.S. Bureau of Mines. II. Hemingway, 
E. L., jt. auth. IIL Berkshire, L. H^.jt. auth. IV. Title. (Series) 

TN23.U71 no. 8682A 622.06173 

U.S. Dept. of the Int. Library 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C. 20402 
Catalog No. I28427:8682A 



m l«* 



r^ CONTENTS 

^ Page 

^«^ti5tract 1 

Introduction i 

N^ General mining plan 2 

\ Summary 5 

^Appendix A,--l .06-MM-tpy mine 6 

sj Appendix B.--2.04-MM-tpy mine 15 

Appendix C. — 3.18-MM-tpy mine 24 

Appendix D.--4.99-MM-tpy mine 33 

ILLUSTRATION 

1. General mining plan 3 

TABLES 

1. Acreage required to provide coal resources necessary to 

sustain a 20-year mining operation 3 

2. Summary of estimated capital investment, operating cost, 

and selling price by annual output capacity 5 

A-1 . Capital investment summary, 1 .06-MM-tpy mine 6 

A-2. Manning table, 1. 06-MM-tpy mine 8 

A-3. Depreciation schedule, 1 .06-MM-tpy mine 9 

A-4. Power and water cost, 1. 06-MM-tpy mine 10 

A-5. Estimated anntial production cost, 1 .06-MM-tpy mine 11 

A-6._ Estimated development cost, 1 .06-MM-tpy mine 12 

A-7.- Estimated working capital and total capital investment, 

1 .06-MM-tpy mine 12 

A-8. Summary of discounted cash flow, 1. 06-MM-tpy mine 13 

A-9. Discounted cash flow, 1 .06-MM-tpy mine 14 

B-1 . Capital investment summary, 2.04-MM-tpy mine 15 

B-2. Manning table, 2.04-MM-tpy mine 17 

B-3. Depreciation schedule, 2.04-MM-tpy mine 18 

B-4. Power and water cost, 2. 04-MM-tpy mine 19 

B-5. Estimated annual production cost, 2.04-MM-tpy mine 20 

B-6. Estimated development cost, 2.04-MM-tpy mine 21 

B-7. Estimated working capital and total capital investment, 

2.04-MM-tpy mine 21 

B-8. Sunmary of discounted cash flow, 2.04-MM-tpy mine 22 

B-9. Discounted cash flow, 2.04-MM-tpy mine 23 

C-1 . Capital investment summary, 3.18-MM-tpy mine 24 

C-2. Manning table, 3.18-MM-tpy mine. 26 

C-3. Depreciation schedule, 3.18-MM-tpy mine 27 

C-4. Power and water cost, 3.18-MM-tpy mine 28 

C-5. Estimated annual production cost, 3.18-MM-tpy mine 29 

C-6. Estimated development cost, 3.18-MM-tpy mine 30 

C-7. Estimated working capital and total capital investment, 

3 . 1 8-MM-tpy mi ne 30 



^ 



11 



TABLES— Continued 



Page 



C-8. Summary of discounted cash flow, 3.18-MM-tpy mine 31 

C-9. Discounted cash flow, 3.18-MM-tpy mine 32 

D-1 . Capital investment summary, 4.99-MM-tpy mine 33 

D-2. Manning table, 4.99-MM-tpy mine 35 

D-3. Depreciation schedule, 4.99-MM-tpy mine 36 

D-4. Power and water cost, 4.99-MM-tpy mine 37 

D-5. Estimated annual production cost, 4.99-MM-tpy mine 38 

D-6. Estimated development cost, 4.99-MM-tpy mine 39 

D-7. Estimated working capital and total capital investment, 

4.99-MM-tpy mine 39 

D-8. Summary of discounted cash flow, 4.99-MM-tpy mine 40 

D-9. Discounted cash flow, 4.99-MM-tpy mine 41 



BASIC ESTIMATED CAPITAL INVESTMENT AND OPERATING COSTS 
FOR UNDERGROUND BITUMINOUS COAL MINES 

Mines With Annual Production of 1.06 to 4.99 Million Tons 
From a 72-Inch Coalbed 

Revision of Information Circular 8632 

by 

Sidney KatellJ E. L. |Hemingway,2 ^nd L. H. Berkshire^ 



ABSTRACT 

This study estimates capital investment, operating costs, and sell- 
ing prices for four underground bituminous mines producing coal with 
annual production ranging from 1.06 to 4.99 million tons. It is assumed 
that the mines have a 20-year life. Wages and union welfare payments are 
considered as of December 6, 1974, under the Bituminous Wage Agreement 
of 1974, and costs for material and equipment are based on 1975 indexes. 

Initial capital investment ranges from $20,799,800 for the 1.06- 
million-ton-per-year (MM tpy) mine to $84,027,500 for the 4.99-MM-tpy 
mine. Total capital investment ranges from $32,506,800 to $122,983,500 
for the same mines. Corresponding selling prices for the coal range 
from $12.87 to $11.64 per ton, assuming a 15-percent discounted cash flow 
rate of return after Federal income taxes. 

INTRODUCTION 

Growing public concern about the increasing demand for energy has 
brought about a renewed interest in coal production in the United States. 
Because cost is an important factor in determining the extent to which 
coal will be used to satisfy this energy requirement, the Bureau of Mines 
is preparing a series of reports that provide estimated capital invest- 
ment and operating costs for hypothetical mines that may be utilized in 
the production of synthetic fuels or for electric utility plants. 



^ Chief, Process Evaluation Group. 
2 Mining engineer. 
^ Economist. 



Three studies that presented capital investment and operating costs 
for coal mines, based on rates in effect under the Bituminous Wage Agree- 
ment of 1971, were published in 1974^. This report is the first of a new 
series that updates the previous publications to reflect wage and union 
welfare rates, which went into effect December 6, 1974, under the Bituminous 
Wage Agreement of 1974. Costs for material and equipment are based on 
January 1975 cost indexes, and selling prices are based on a 15-percent 
discounted cash flow (DCF) rate of return after Federal income taxes. Mines 
are assumed to have a 20-year life. 

This study presents basic capital investment and production costs for 
four hypothetical underground bituminous coal mines with a 72-inch working 
height and with annual production ranging from 1.06 to 4.99 million tons 
of coal. Since costs are affected by many factors, any particular mine, in 
reality, will have to be considered in relation to its own special situa- 
tion and requirements. 

This publication. Information Circular 8682A, modifies areas in which 
results of various calculations were carried forward incorrectly in 
Information Circular 8682. 

GENERAL MINING PLAN 

It is assumed that the mines operate 5 days per week, 220 days per 
year, and have a 20-year life. Continuous miner- sections produce 344 tons 
of coal per unit per shift. 

Acres of surface needed to produce the required tonnages are calculated 
assuming 1,800 tons of coal per acre-foot with 6 feet of mining height and 
57-percent recovery. The following table shows the acreage requirements. 

TABLE 1 . - Acreage required to provide coal resources 

necessary to sustain a 20-year mining operation 



Production, MM tpy 


Acres required, 57-percent recovery 


1.06 


3,442 


2.04 


6,639 


3.18 


10,326 


4.99 


16,228 



iKatell, Sidney, and E. L. Hemingway. Basic Estimated Capital Investment 
and Operating Costs for Underground Bituminous Coal Mines: Mines With 
Annual Production of 1.06 to 4.99 Million Tons From a 72-Inch Coal bed. 
BuMines IC 8632, 1974, 41 pp. 

. Basic Estimated Capital Investment and Operating Costs for Under- 
ground Bituminous Coal Mines: Mines With Annual Production of 1.03 to 
3.09 Million Tons From a 48-Inch Coal bed. BuMines IC 8641, 1974, 31 pp. 
Basic Estimated Capital Investment and Operating Costs for Coal 



Strip Mines. BuMines IC 8661, 1974, 31 pp, 



The general mining plan involves driving main entries along the 
center axis of the property with production headings on the right and 
left. In the 1.06- and 2.04-MM-tpy mines, all mining is concentrated on 
one side of the main heading, the plan being to mine one side of the main 
entries on the advance and the other side on the retreat. In the 3.18- 
and 4.99-MM-tpy mines, production headings were driven both ways off the 
main headings to reduce development time and to reach full production with 
the number of units required. 

The main headings have 11 entries, and the production headings have 
8 entries, 14 feet wide on 95-foot centers. The production panels are on 
the 8-entry system, 16 feet wide on 95-foot centers. Production panels 
are 2,600 feet long plus an additional length for development of the 
bleeder system. Figure 1 is a diagram of the general mining plan. 



Coalbed outcrop 



Bleeders 



Direction of mining 



Production heading 



:B I e e d e r s ; 



Production heading 



: B I e e d e r s 'r 



Direction of mining 



Prod uction heading 



Bleeders: 



Production headi ng- 



FIGURE 1. - General Mining plan. 



Each loading unit will consist of a continuous miner, a loading 
machine, two shuttle cars, and a roof bolter. The shuttle cars will dump 
into a ratio feeder at the tailpiece of the unit belt conveyor. Unit 
manpower consists of 10 men and a foreman. Each unit is equipped with a 
power center to reduce high voltage to equipment requirements. A recti- 
fier converts alternating current to direct current where necessary. 

Coal is transported to the surface by belt conveyors. The main head- 
ing conveyors are 42 inches wide, and the production headings and panels 
are 36 inches wide. 



The estimated development cost covers the period of time needed to 
establish the outside facilities and the time required to place all under- 
ground mining units in operation within the basic mining plan. Time 
needed to develop the surface area depends on topography and the location 
of existing roads, railroads, navigable rivers, or plant site. The 
development period was estimated conservatively at 1 year for the 1 -MM-tpy 
mine, 1-1/2 years for the 2- and 3-MM-tpy mines, and 2 years for the 5-MM- 
tpy mine, but could vary with the location. 



The following detailed equipment 
of equipment that will be used in the 

Continuous miner 
Hp: 600. 
Drive: Motor. 

Loading machine 

Loading rate: 25/30 tons 

per minute (tpm). 
Hp: 160. 
Drive: Motor. 

Shuttle car 
Hp: 135. 
Drive: Motor. 

Ratio feeder 

Can accept 15+ tons of coal 

discharge at desired rate. 
Self-tramming. 
Equipped with lumpster. 

Auxiliary fan 

To provide more effective 
ventilation at working face. 

Triple duty rock duster 
To dust main heading, faces, 

and back area. 
Hp: 30. 



list describes the principal pieces 
mines: 

Roof bolter 
Dual boom. 
Hp: 50. 
Equipped with dust collector. 

Supply motor 
To haul supplies to working 

faces. 
Hp: 80. 
Drive: Motor. 

Mainl ine belt power center 
~I00 kV-A. 

Section belt power center 
150 kV-A. 

Section rectifier 
200 kW. 

Rectifier for track haulage 
1 ,000 kW. 

Main ventilation fan 
Type: Dual. 
Size: 8 ft. 

350,000 cfm at 6-inch water' 
gage. 



Information supporting the cost figures in this study is included 
in tables that make up appendixes A, B, C, and D for the 1.06-, 2. 04-, 
3. 18-, and 4.99-MM-tpy mines, respectively. The following tables are 
included for each of the mines. 



Table No , 
1 
2 
3 
4 
5 
6 
7 



Capital investment summary 

Manning table 

Depreciation schedule 

Power and water cost 

Estimated annual production cost 

Estimated development cost 

Estimated working capital and total capital 

investment 
Summary of discounted cash flow 
Discounted cash flow 



SUMMARY 



This study furnishe:5 cost analyses for four hypothetical underground 
bituminous mines that produce 1.06, 2.04, 3.18, and 4.99 million tons of 
coal per year. A summary of the total capital investments, operating 
costs, and selling prices is given in table 2. 

TABLE 2. - Summary of estimated capital investment , 
operating cost, and selling price 
by annual output capacity 



MM tpy 

Initial , 

Deferred 

Total . . , 

Per ton of 
production, 



1.06 



2.04 



3.18 



4.99 



$20,799,800 
11,707,000 



Per year. 
Per ton. , 



12 percent DCF 
1 5 percent DCF 
20 percent DCF 



32,506,800 



30.67 



9,744,200 

9.19 



11.92 
12.87 
14.49 



Capital investment 



$36,943,000 
18_j_615,000 



55,558,000 



27.23 



$54,853,800 
26,164,500 



81,018,300 



25.48 



Production cost 



$84,027,500 
38,956,000 



122,983,500 



17,335,600 

8.50 



25,988,100 

8.18 



Selling price per ton 



11.15 
12.08 
13.68 



10.74 
11.63 
13.17 



24.65 



40,500,300 

8.12 



10.71 
11.64 
13.25 



APPENDIX A.— 1.06-MM-TPY MINE 



TABLE A-1 . - Capital investment summary. 

Item 

Continuous miner 

Loading machine 

Shuttle car 

Roof bolter 

Ratio feeder 

Auxiliary fan 

Mantrip Jeep^ 

Mechanic Jeep 

Personnel Jeep 

Trickle rock duster 

Triple duty rock duster 

Supply motor 

Supply car 

36-inch rope-type belt conveyor 

Mainline belt power center (300 kV-A)... 
Section belt power center (150 kV-A).... 

Section power center (1,000 kV-A) 

Section rectifier (200 kW) 

Section switch house 

Sectional i zing switch house 

High voltage (HV) cable (300 mill "ion 

circular mill aluminum {MCM AL}) 

PLM^ coupler 

Section cable and coupler 

Rectifier for track haulage 

Trol 1 ey wi re 

Track (60-1 b) 

Fresh water lines 

Pumps and 1 i nes 

Telephone (page phones) 

Conveyor fire protection 

Automatic controls and alarms 

Scoop tractor 

Battery charger 

All service mask 

Breathi ng apparatus 

Self rescuer 

Stretcher set 

Safety 1 ight 

Methanometer 

Fire chemical car 

Lamp (including accessories) 

Dust sampler 

Site preparation 

Ventilation fan (dual) 



1 .06-MM-tpy mine 



Quantity 



Total cost 



6 




$1,809,600 


6 




483,800 


12 




889,500 


8 




425,000 


6 




270,000 


7 




26,300 


6 




105,000 


3 




41,300 


4 




50,000 


8 




35,000 


7 




271,000 


3 




94,000 


25 




78,100 


25,740 


ft 


1,771,500 


5 




93,800 


5 




62,500 


6 




172,500 


6 




15,000 


6 




56,300 


7 




65,600 


12,000 


ft 


120,000 


15 




14,600 


- 




46,600 


1 




25,000 


24,740 


ft 


77,400 


24,740 


ft 


247,400 


24,740 


ft 


92,800 


- 




19,000 


- 




9,000 


- 




25,000 


- 




50,000 


7 




245,000 


7 




26,200 


12 




1,500 


12 




9,400 


250 




9,400 


8 




1,300 


100 




4,400 


100 




37,500 


4 




15,000 


250 




13,000 


20 




7,500 


- 




40,000 


" 




120,000 



TABLE A-1. - Capital investment summary, 1.06-rf1-tpy mine - Continued 



Item 



Concrete portal 

Bulk rock dust facility 

Substation and distribution...... 

Bathhouse, office, and lamp house, 

Shop and warehouse , 

Powder and cap house 

Front-end loader 

Forklift , 

Bulldozer , 

Uti 1 i ty truck , 

Pickup truck 

Oil storage 

Water tank 

Supply yard 

Mine drainage treatment plant 

Exploration 

Total direct 

Field indirect 

Total construction 

Engi neeri ng 

Overhead and administration 



Quantity Total cost 



Contingency. 
Fee 



Estimated development cost. 



Interest during development 

Gross estimate 

Credit for coal mined during development at $10 per ton 

Land acquired at $2,500 per acre 



Net estimate, 



75,000 

20,000 

100,000 

350,000 

187,500 

5,000 

63,000 

44,000 

100,000 

9,000 

6,000 

12,000 

12,000 

15,000 

37,500 

65,000 



,175 
183 



,800 
,500 



9,359 
187 
477 



,300 
,200 
,300 



10,023 
1,503 



,800 
,600 



11,527 
230 



,400 
,500 



11,757 

8,593 

20,351 



,900 
,700 
7BM 



1,017,600 



11,275 



':7m 

,000 



10,094 
8,600 



,200 
,000 



18,694,200 



^Reference to specific trade names in this report is done to facilitate 
understanding and does not imply endorsement by the Bureau of Mines. 



TABLE A- 2. - Manning table, 1.06;-MM-tpy mine 



Personnel 


Total 


Wagesi 
per day 


Cost 
per year 


Cost 
per ton 


Underground: 
Continuous miner operator... 

Loading machine operator 

Machine operator helper 

Shuttle car operator 

Roof bol ter 


14 

14 

14 

28 

28 

14 

14 

14 

140 

4 

9 

6 

6 

6 

3 

9 

6 

3 

52 

3 

2 

6 

11 

1 
1 
3 

14 
1 
1 
3 
1 
1 
3 
1 
3 
3 
1 
1 
1 
4 

43 


$55.00 
51.98 
51.98 
49.23 
55.00 
47.03 
49.23 
55.00 

47.58 
47.03 
47.03 
47.03 
49.23 
47.03 
49.23 
55.00 
55.00 

45.38 
47.85 
49.50 


$172,128 
162,826 
162,826 
308,713 
344,256 
147,580 
154,357 
172,128 




Bra tt iceman 




Ut i 1 i ty man 




Mechanic (section) 




Supply motorman 


1,624,800 
42,398 
94,968 
63,311 
63,311 
65,743 
31,657 
99,324 
73,568 
36,916 


$1.53 


Bel tman 




Trackman 

Wi reman 




Mason (precision) 

Pumper 

Utility crew 




Roving mechanic 




Fireboss (union) 




Outside: 

Lampman 

Front-end loader operator... 
Shop mechanic 


571,196 

30,568 
21,318 
66,572 


.54 


Salary: 

Superintendent 

General mi ne foreman 

Assistant mine foreman 


118,458 

30,000 
20,000 
48,000 
196,000 
21,800 
15,200 
45,000 
22,500 
9,200 
29,700 
19,800 
43,500 
31,500 
15,800 
11,000 
15,800 
39,600 


.11 


Maintenance superintendent.. 
Mine maintenance foreman 




Draftsman 




Survey crew 




Safety director 




Safety inspector 

Dust sampler 




Office manager 




Timekeeper and bookkeeper... 

Purchasing supervisor 

Warehouseman 






614,400 


.58 


Total labor and supervision... 


246 


2,928,900 


2.76 



1 Figures in this column are 
other shifts are reflected 



for the day shift. Shift differentials for 
in the cost per year. 



TABLE A-3. - Depreciation schedule, 1 .06-MM-tpy mine 



Item 

Exploration , 

Mine drainage treatment plant 

Supply yard 

Water tank , 

Oil storage 

Pickup truck , 

Utility truck 

Bulldozer 

Forklift 

Front-end loader , 

Powder and cap house 

Shop and warehouse , 

Bathhouse, office, and lamp house. 

Substation 

Bulk rock dust facility. 

Concrete portal s . . . , , 

Ventilation fan. , 

Site preparation. 

Coal mine safety equipment. 

Underground equipment 

Interim equipment replacement 

Subtotal 

Depreciation for field indirect, 
engineering, overhead and 
administration, contingency, 
fee, cost of development, and 
interest during development, 
less credit for coal mined 
at $1 per ton 



Total 



Straight-line 
depreciation, years 




Yearly 
doll 



charge, 
ars 



n, 090, 200 



^.'^l.O.l per ton. 



10 



TABLE A-4. - Power and water cost, 1.06-MM-tpy mine 



Number 

of 
units 


Operation 


Hp per 
unit 


Hp, 
total 
load 


Hr per 

day, full 

load 


KW, 
total 
load 


Total kW-hr 
revquirement 


5 
4 


Continuous miner. . 
Continuous miner. . 


600 
600 


3,000 
2,400 


10 
5 


2,238 
1,790 


22,380 
8,950 


5 
4 


Loading machine. . . 
Loading machine. . . 


160 
160 


800 
640 


10 

5 


597 
477 


5,970 
2,385 


10 
8 


Shuttle car 

Shuttle car 


135 
135 


1,350 
1,080 


10 
5 


1,007 
806 


10,070 
4,030 


5 
4 


Roof bolter 

Roof bolter 


50 
50 


250 
200 


12 
6 


187 
149 


2,244 
894 


5 
4 


Ratio feeder 

Ratio feeder 


125 
125 


625 

500 


10 

5 


466 
373 


4,660 
1,865 


5 


Auxiliary fan 


30 


150 


18 


112 


2,016 


5 
4 


Mantrip Jeep 

Mantrip Jeep 


15 
15 


75 

60 


4 
2 


56 

45 


224 
90 


3 


Mechanic Jeep 


15 


45 


15 


34 


510 


4 


Personnel Jeep 


7.5 


30 


15 


22 


330 


7 


Rock duster 


30 


210 


12 


157 


1,884 


3 


Supply motor 


80 


240 


12 


179 


2,148 


10 


36-inch conveyor. . 




850 


15 


634 


9,510 


1 


Ventilation fan. . . 




500 


24 


373 


8,952 




Extra for pumps, 
tools, lights, 
etc 




400 


10 


298 


2,980 




Total 


92,092 



NOTE. - Power: $0.02 x 92,092 x 220 = $405,200 r 1,059,500 
= $0.38 per ton. 
Water: 3,000 gal per unit per shift at $0.10 per M 
= 3,000 X 14 X 220 x 0.10 t 1,000 = $900. 



gal 



n 



TABLE A-5. - Estimated annual production cost, 1.06-MM-tpy i.,ine 



Direct cost: 
Production: 

Labor 

Supervision. 



Maintenance: 

Labor , 

Supervision, 



Operating supplies: 

Mining machine parts 

Lubrication and hydraulic oil 

Roof bolts and timber 

Rock dust 

Ventilation 

Bits 

Cables 

Miscellaneous 



Power 

Water 

Payroll overhead (40 percent of payroll).. 
Union welfare^ 



Indirect cost: 
15 percent of labor, supervision, 
and supplies 



Fixed cost: 
Taxes and insurance, 2 percent of 

mine cost 

Depreciation 



Total 



Annual cost 



Cost per ton 



$2,002,200 

532,400 

2,534,600 

312,300 

82,000 

394,300 



669,800 
266,000 
328,600 
139,800 
201 ,400 
127,200 
63,600 
159,000 
1,955,400 

405,200 

900 

1,171,600 

1,105,900 

732,600 



353,500 
1,0 90,200 
r;443.70ff 



9,744,200 



$1.89 

.50 

2.39 



.29 
.08 
.37 

.63 
.25 
.31 
.13 
.19 
.12 
.06 
.15 
1.84 

.38 



1.11 
1.05 

.69 



.33 
1.03 



9.19 



lEffective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974. 



12 



TABLE A-6. - Estimated development cost^, 1.06-MM-tpy mine 



Item 



Total cost 



Cost per ton 



Total labor and supervision 

Operating supplies 

Power 

Payrol 1 overhead 

Union welfare 

Indirect cost 

Fixed cost 

Total 



$3,166,600 

1,296,600 

281,900 

1,266,600 

1,172,600 

654,000 

755,400 



1.15 

.25 

1.12 

1.04 

.58 

.67 



8,593,700 



7.62 



lEstimated development cost covers the period of time required to place 
all units in operation within the projected mining plan. 

NOTE. - Cost per ton = $7.62. 
Tonnage *= 1,127,500. 
Credit for coal mined at $10 per ton = $11,275,000. 



TABLE A-7. - Estimated working capital and total capital investment , 

1 .06-M'^-tpy mine 



Estimated working capital: 

Direct labor 3 months. 

Operating supplies 3 months. 

Payroll overhead 3 months. 

Indirect cost 4 months. 

Fixed cost 0.5 percent of insurance base. 

Spare parts 

Mi seel 1 aneous 

Total worki ng capi tal 



$732,200 

488,900 

292,900 

244,200 

88,400 

230,000 

29,000 

2,105,600 



Total estimated capital investment: 

Total mine cost (insurance, tax base) 17,676,600 

Interest during development 1 ,017,600 

Subtotal 18,694,200 

Working capital 2,105,600 

Estimated capi tal i nvestment 20,799,800 

Estimated deferred capital investment 11 ,707,000 

Total capital investment and deferred investment... ^32,506,800 

iThis is an average cost of f)3n.67 per ton of annual production. 



13 



TABLE A-8, - Summary of discounted cash flow, 1.06-MM-tpy mine 









Present 


Present worth 










worth 


capital 


Present worth 




Capital 




factor at 


investment 


cash flow value 


Year 


investment 


Cash flow 


15 percent 


at 15 percent 


at 15 percent 





$20,799,800 


$-20,799,800 


1. 


^20,799,800 


$-20,799,800 


1 


157,000 


3,560,300 


.8696 


136,500 


3,096,000 


2 


157,000 


3,560,300 


.7561 


118,700 


2,691,900 


3 


157,000 


3,560,300 


.6575 


103,200 


2,340,900 


4 


157,000 


3,560,300 


.5718 


89,800 


2,035,800 


5 


321 ,000 


3,396,300 


.4972 


159,600 


1,688,600 


6 


157,000 


3,560,300 


.4323 


67,900 


1,539,100 


7 


157,000 


3,560,300 


.3759 


59,000 


1,338,300 


8 


157,000 


3,560,300 


.3269 


51,300 


1,163,900 


9 


157,000 


3,560,300 


.2843 


44,600 


1,012.200 


10 


8,396,000 


-4,678,700 


.2472 


2,075,500 


-1,156,600 


11 


157,000 


3,560,300 


.2149 


33,700 


765,100 


12 


157,000 


3,560,300 


.1869 


-29,300 


665,400 


13 


157,000 


3,560,300 


.1625 


25,500 


578,500 


14 


157,000 


3,560,300 


.1413 


22,200 


503,100 


15 


321,000 


3,396,300 


.1229 


39,500 


417,400 


16 


157,000 


3,560,300 


.1069 


16,800 


380,600 


17 


157,000 


3,560,300 


.0929 


14,600 


330,800 


18 


157,000 


3,560,300 


.0808 


12,700 


287,700 


19 


157,000 


3,560,300 


.0703 


11,000 


250,300 


20 


-10.548,60a 


14,265,900 


.0611 


-644,500 


871,600 




23,266,700 


800 



14 

TABLE A-9. - Discounted cash flow, 1.06-MM-tpy mine 

15 percent - 20 years 

R = $23,266,700 - 6.259i = $3,717,300 

less depreciation 1,090,200 

Depletion + net profit = 2,627,100 

Depletion = 10 percent of sales 
Federal income tax = net profit 
Depletion + net profit = cash flow - depreciation 

Sales = 1/0.55 (1/2 operating cost + cash flow - depreciation) 
= 1/0.55 (4,872,100 + 2,627,100) 

Sal es $1 3,634,900 

Operating cost 9,744,200 

Gross profit 3,890,700 

Depletion 1,363,500 

Taxable income 2,527,200 

Federal income tax 1 ,263,600 

Net profit 1,263,600 

Annual cash flow = net profit + depreciation + depletion 
= $1,263,600 + $1,090,200 + $1,363,500 
= $3,717,300 

Selling price per ton = $13,634,900 f 1.059,500 = $12.87 

lUniform series present worth factor. 



15 



APPENDIX B.— 2.04-MM-TPY MINE 



TABLE B-1 . - C apital investment summary, 2.04-MM-tpy mine 

Item Quantity Total cost~ 

Continuous miner T\ $3,317,600 

Loading machine 11 886,600 

Shuttle car 22 1,630,200 

Roof bolter 13 692,900 

Ratio feeder 11 495,000 

Auxiliary fan 13 49,400 

Mantrip Jeep 9 157,500 

Mechanic Jeep 4 55,200 

Personnel Jeep 6 75,000 

Trickle rock duster 14 61,600 

Triple duty rock duster 12 466,800 

Supply motor 5 156,500 

Supply car 50 155,000 

42-inch rope-type mainline belt conveyor 9,000 ft 720,000 

36-inch rope-type belt conveyor 26,561 ft 1,832,700 

Mainline belt power center (300 kV-A) 5 95,000 

Section belt power center (150 kV-A) 7 87,500 

Section power center (1,000 kV-A) 11 316,300 

Section rectifier (200 kW) 11 27,500 

Section switch house 11 103,100 

Sectional izing switch house 10 93,800 

HV cable (300 MCM AL) 13,100 ft 131,000 

PLM coupler 17 16,600 

Section cable and coupler - 85,300 

Rectifier for track haulage 2 50,000 

Trolley wire 31,300 ft 98,600 

Track (60-1 b) 31,300 ft 313,000 

Fresh water line 31,300 ft 117,400 

Pumps and lines - 25,000 

Telephone (page phones) - . 10,000 

Conveyor fire protection - 27,500 

Automatic controls and alarms - 75,000 

Scoop tractor 12 375,000 

Battery charger 12 30 ,000 

All service mask 36 4,500 

Breathing apparatus 24 18,800 

Self rescuer 450 16,900 

Stretcher set 12 1,900 

Safety light 200 8,800 

Methanometer 200 75,000 

Fire chemical car 8 30,000 

Lamp (including accessories) 450 23,600 

Dust sampler 35 13,100 

Site preparation - 37,500 

Ventilation fan (dual) - 115,000 



16 
TABLE B-1 . - Capital investment summary, 2.04-MM-tpy mine - Continued 

Item Quantity Total cost 

Concrete portal 5 87 , 500 

Bulk rock dust facility 1 25,000 

Substation and distribution 1 87,500 

Bathhouse, office, and lamp house 1 390,000 

Shop and warehouse 1 250,000 

Powder and cap house 1 7, 500 

Front-end loader 1 62,500 

Forklift 1 25,000 

Bulldozer 1 100,000 

Utility truck 1 5,000 

Pickup truck 1 3,800 

Oil storage 1 18,800 

Water tank 1 18,800 

Supply yard 1 18,800 

Mine drainage treatment plant - 37,500 

Exploration - 125,000 

Total direct 14,437,400 

Field indirect 288,700 

Total construction 14,726,100 

Engineering 294,500 

Overhead and administration 751 ,000 

15,771,600 

Conti ngency 2,365,700 

18,137,300 

Fee 362,700 

18,500,000 

Estimated development cost 11 ,795,900 

30,295,900 

Interest during development 1 ,514,800 

Gross estimate 31,810,700 

Credit for coal mined during development at $10 per ton. 15,251 ,000 

16,559,700 

Land acquired at $2,500 per acre 16,597,500 

Net estimate 33,157,200 



17 



TABLE B-2. - Manning table, 2.04-MM-tpy mine 



Personnel 

Underground: 

Continuous miner operator.. 

Loading machine operator... 

Machine operator helper 

Shuttle car operator 

Roof bolter 

Bratt iceman 

Utility man 

Mechanic (section) 

Supply motorman 

Beltman 

Trackman 

Wi reman 

Mason (precision) 

Pumper 

Utility crew o 

Roving mechanic 

Fireboss (union) 

Outside: 

Lampman 

Front-end loader operator.. 
Shop mechanic 

Salary: 

Superintendent 

General mi ne foreman 

Assistant mine foreman 

Section foreman 

Maintenance superintendent. 

General shop foreman 

Mine maintenance foreman... 

Chief mine engineer 

Draftsman 

Survey crew 

Safety director 

Safety inspector 

Dust sampler 

Office manager 

Timekeeper and bookkeeper.. 

Purchasing supervisor 

Warehouseman 

Total labor and supervision 
1 Figures in this column are for 
other shifts are reflected in 



Total 



Wages 1 
per day 



Cost 
per year 



Cost 
per ton 



27 
27 
27 
54 
54 
27 
27 
27 



270 
6 

18 
9 
9 

12 
3 

18 
9 
3 



87 

3 
3 
9 



15 

1 
1 
3 
27 
1 
1 
3 
1 
1 
3 
1 
3 
3 
1 
1 
1 
4 



56 



428 



the day 
the cost 



$55.00 
51.98 
51.98 
49.23 
55.00 
47.03 
49.23 
55.00 

47.58 
47.03 
47.03 
47.03 
49.23 
47.03 
49.23 
55.00 
55.00 



45.38 
47.85 
49.50 



$332,244 
314,304 
314,304 
595,941 
664,488 
284,901 
297,971 
332,244 



3,136,397 
64,037 

189,936 
94,968 
94,968 

132,430 
31,657 

198,648 

110,748 
36,916 



954,308 

30,568 
32,197 
99,858 



162,623 

30,000 
20,000 
48,000 
378,000 
21,800 
15,200 
45,000 
22,500 
9,200 
29,700 
19,800 
43,500 
31,500 
15,800 
11,000 
15,800 
39,600 



796,400 



5,049,700 



$1.54 



.47 



,08 



39 



2.48 



shift. Shift differentials for 
per year. 



18 



TABLE B-3. - Depreciation schedule, 2.04-MM-tpy mine 



Item 

Exploration 

Mine drainage treatment plant , 

Supply yard 

Water tank 

Oil storage 

Pickup tfuck , 

Utility truck 

Bulldozer 

Forklift , 

Front-end loader , 

Powder and cap house , 

Shop and warehouse , 

Bathhouse, office, and lamp house, 

Substation 

Bulk rock dust facility , 

Concrete portal s , 

Venti 1 ati on fan 

Site preparation , 

Coal mine safety equipment 

Underground equipment , 

Interim equipment replacement...., 
Subtotal , 

Depreciation for field indirect, 
engineering, overhead and 
administration, contingency, 
fee, cost of development, and 
interest during development, 
less credit for coal mined 
at $1 per ton , 



Straight-line 
depreciation, years 



Yearly 
dol 



charge, 
lars 



,800 
,900 
,900 
,900 

800 
,000 
,000 
,500 
,30C 

800 
,500 
,500 
,400 
,500 
,400 
,800 
,900 
,000 
,700 
,000 



Total 




6 
3 
1 
1 
1 

1 

10 

2 

6 

12 

19 

4 

2 

4 

5 

1 

59 

,272 

233 



1,652,900 



106.100 



1,759,000 



i$0.86 per ton. 



19 



TABLE B-4. - Power and water cost, 2.04-MM-tpy-mine 



Number 

of 
units 


Operation 


Hp per 
unit 


Hp, 
Total 
load 


Hr per 

day, full 

load 


KW, 
total 
load 


Total kW-hr 
requirement 


5 
9 
18 
9 
9 
9 
9 
4 
6 
9 
5 
3 
2 
7 
1 


Continuous miner. . 

Loading machine.. . 

Shuttle car 

Roof bolter 

Ratio feeder 

Auxiliary fan 

Mantrip Jeep 

Mechanic Jeep 

Personnel Jeep 

Rock duster 

Supply motor 

42-inch conveyor. . 

36-inch conveyor. . 

36-inch conveyor. . 

Ventilation fan. . . 

Extra for pumps, 
tools, lights, 
etc 


600 
160 
135 

50 
125 

30 

15 

15 
7.5 

30 

80 
125 
100 

50 


5,400 

1,440 

2,430 

450 

1,125 

270 

135 

60 

45 

270 

400 

375 

200 

350 

500 

500 


15 
15 
15 
18 
15 
18 
6 
15 
15 
12 
12 
15 
15 
15 
24 

10 


4,028 

1,074 

1,813 

336 

839 

201 

101 

45 

34 

201 

298 

280 

149 

261 

373 

373 


60,420 

16,110 

27,195 

6,048 

12,585 

3,618 

606 

675 

510 

2,412 

3,576 

4,200 

2,235 

3,915 

8,952 

3,730 




Total 


156,787 



NOTE. - Power: 



Water: 



$0.02 X 156,787 x 220 = $689,900 - 2,043,400 
= $0.34 per ton. 

3,000 gal per unit per shift at $0.10 per M gal 
= 3,000 X 27 X 220 x 0.10 t 1,000 = $1,800. 



20 



TABLE B-5. - Estimated annual production cost, 2.04-MN-tpy mine 



Annual cost Cost per ton 



Direct cost: 
Production: 

Labor 

Supervision, 



Maintenance: 

Labor 

Supervision, 



Operating supplies: 

Mining machine parts 

Lubrication and hydraulic oil 

Roof bolts and timber 

Rock dust 

Ventilation 

Bits 

Cables 

Mi seel 1 aneous 



Power 

Water 

Payroll overhead (40 percent of payroll).. 
Union welfare^ 



Indirect cost: 
15 percent of labor, supervision, and 
suppl i es , 



Fixed cost: 
Taxes and insurance, 2 percent of 

mine cost 

Depreciation 



Total 



$3,710,500 


$1.82 


714,400 


.35 


4,424,900 


2.17 


542,800 


.27 


82,000 


.04 


624,800 


.31 


1,287,300 


.63 


510,800 


.25 


633,500 


.31 


265,600 


.13 


388,200 


.19 


245,200 


.12 


122,600 


.06 


306,500 


.15 


3,759,700 


1.84 


689,900 


.34 


1,800 




2,019,900 


.99 


2,101,400 


1.03 


1,321,400 


.65 


632,800 


.31 


1,759,000 


.86 


2,391,800 


1.17 


17,335,600 


8.50 



^Effective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974 



21 



TABLE B-6. - Estimated development cost^, 2.04-MM-tpy mine 



Item 



Total cost 



Cost per ton 



Total labor and supervision. 

Operating suppl ies 

Power , 

Payrol 1 overhead 

Union welfare 

Indirect cost , 

Fixed cost , 

Total 



$475015,800 

1,75 3,900 

38il,300 

1,708,100 

1,570,900 

884, 600 

991 , 300 



$2.95 

1.15 

.25 

1.12 

1.03 

.58 

.65 



11,795,900 



7.73 



^Estimated development cost covers the period of time rt squired to place 
all units in operation within the projected mining p'lari'. 

NOTE. - Cost per ton = $7.73. 
Tonnage = 1,525,100. 
Credit for coal mined at $10 per ton = $15,251,00 0. 



TABLE B-7. - Estimated working capital and total capita l 

2.04-MM-tpy mine 

Estimated working capital : 

Direct labor 3 months. . . 

Operating supplies 3 months... 

Payrol I overhead 3 months . . . 

Indirect cost 4 months... 

Fixed cost 0.5 percent of insurance base... 

Spare parts 

Mi seel 1 aneous 

Total working capital 



Total estimated capital investment: 
Total mine cost (insurance, tax base) 
Interest during development 



linvestment. 



$1,262,400 
939,900 
505,000 
440,500 
158,200 
424,800 
55,000 

3,785,800 



31,642,400 
1,1 514,800 



Subtotal 33,1 57 ,200 

Working capital 3,7^35,800 

Estimated capital investment 36,943,000 

Estimated deferred capital investment 18^1^5^000 

Total capital investment and deferred investment... ^55,55£ '^000 

iThis is an average cost of $27.23 per ton of annual producti on . 



22 



TABLE B-8. - Sunrnary of discounted cash flow, 2.04-MM-tpy mine 









Present 


Present worth 


Present worth 








worth 


capital 


cash flow 




Capital 




factor at 


investment 


vaiue at 


Year 


investment 


Cash flow 


15 percent 


at 15 percent 


15 percent 


-1/2 


$14,777,200 


$-14,777,200 


1.07238 


$15,846,800 


$-15,846,800' 





22,165,800 


-22,165,800 


1. 


22,165,800 


-22,165,800 


1 


233,000 


6,432,300 


.8696 


202,600 


5,593,500 


2 


233,000 


6,432,300 


.7561 


176,200 


4,863,500 


3 


233,000 


6,432,300 


.6575 


153,200 


4,229,200 


4 


233, OOC) 


6,432,300 


.5718 


133,200 


3,678,000 


5 


537,000 


6,128,300 


.4972 


267,000 


3,047,000 


6 


233,000 


6,432,300 


.4323 


105,400 


2,780,700 


7 


233,000 


6,432,300 


.3759 


87,600 


2,417,900 


8 


233, OOO 


6,432,300 


3269 


76,200 


2,102,700 


9 


233,0 00 


6,432,300 


,2843 


66,200 


1,828,700 


10 


13,580,fJ00 


-6,914,700 


.2472 


3,357,000 


-1,709,300 


11 


233, 000 


6,432,300 


.2149 


50,100 


1,382,300 


12 


233 ,000 


6,432,300 


.1869 


43,500 


1,202,200 


13 


233 ,000 


6,432,300 


.1625 


37,900 


1,045,200 


14 


23-J,O00 


6,432,300 


.1413 


32,900 


908,900 


15 


537,000 


6,128,300 


.1229 


66,000 


753,200 


16 


2?;3,000 


6,432,300 


.1069 


24,900 


687,600 


17 


233,000 


6,432,300 


.0929 


21,600 


597,600 


18 


2 33,000 


6,432,300 


.0808 


18,800 


519,700 


19 


?.'33,000 


6,432,300 


.0703 


16,400 


452,200 


20 


-20, 150,300 


26,815,600 


.0611 


-1,231,200 


1 ,638,400 




41,718,100 


6,600 



23 



TABLE B-9. - Discounted cash flow, 2.04-MM-tpy mine 
15 percent - 20 years 

R = $41,718,100 T 6.259I = $6,665,300 

less depreciation 1 ,759,000 

Depletion + net profit = 4,906,300 

Depletion = 10 percent of sales 
Federal income tax = net profit 
Depletion + net profit = cash flow - depreciation 

Sales = 1.0/0.55 (1/2 operating cost + cash flow - depreciation) 
= 1/0.55 (8,667,800 + 4,906,300) 

Sales $24,680,200 

Operating cost 17,335,600 

Gross profit 7,344,600 

Depletion 2,468,000 

Taxable income 4,876,600 

Federal income tax 2,438,300 

Net profit 2,438,300 

Annual cash flow = net profit + depreciation + depletion 
= $2,438,300 + $1,759,000 + $2,468,000 
= $6,665,300 

Selling price per ton = $24,680,000 t 2,043,400 = $12.08 

lUniform series present worth factor. 



24 



APPENDIX C.~3.18-MM-TPY MINE 
TABLE C-1 . - Capital investment summary, 3'.18-MM-tpy mine 



Item Quantity 

Continuous miner TT~ 

Loading machine 17 

Shuttle car 34 

Roof bol ter 17 

Ratio feeder 17 

Auxiliary fan 17 

Mantri p Jeep 17 

Mechani c Jeep 6 

Personnel Jeep 8 

Trickle rock duster 17 

Tripl e duty rock duster 13 

Supply motor 6 

Supply car 70 

42-inch rope-type mainline conveyor belt 9,000 

36-inch rope-type secondary and panel belt... 36,000 

Mainline belt power center (300 kV-A) 6 

Section belt power center (150 kV-A) 14 

Section power center (1,000 kV-A) 17 

Section rectifier (200 kW) 17 

Section switch house 17 

Sectional izing switch house 10 

HV cable (300 MCM AL) 16,000 

PLM coupler 18 

Section cable and coupler 

Rectifier for track haulage 3 

Trolley wire 51,000 ft 

Track (60-1 b) 51 ,000 ft 

Fresh water 1 ine 51 ,000 ft 

Pumps and lines 

Telephone (page phones) 

Conveyor fire protection 

Automatic controls and alarms 

Scoop tractor 17 

Battery charger 17 

All service mask 36 

Breathing apparatus 36 

Sel f rescuer 650 

Stretcher set 20 

Safety light 300 

Methanometer 300 

Fire chemical car 10 

Lamp (including accessories) 650 

Dust sampl er 50 

Site preparation 

Ventilation fan (dual) 



Total 

$b,127 

1,370 

2,519 

906 

765 

64 

297 

82 

100 

74 

503 

187 

217 

720 

2,412 

112 

175 

489 

42 

159 

94 

160 

18 

89 

75 

159 

510 

191 

31 

11 

30 

93 

595 

62 

3 

28 

24 

4 

13 
120 
38 
33 
20 
50 
120 



cost 
WT 
200 
400 
100 
000 
600 
500 
800 
000 
800 
100 
800 
000 
000 
000 
800 
000 
600 
500 
800 
000 
000 
000 
300 
000 
600 
000 
300 
300 
300 
000 
800 
000 
900 
600 
800 
400 
000 
200 
000 
000 
800 
000 
000 
000 



ft 
ft 



ft 



25 



TABLE C-1. - Capital investment summary, 3.18-MM-tpy mine - Continued 

I tem Quantity Total cost 

Concrete portal 5 

Bulk rock dust facility 1 

Substation and distribution 1 

Bathhouse, office, and lamp house 1 

Shop and warehouse 1 

Powder and cap house 1 

Front-end 1 oader 1 

Forkl ift 1 

Bull dozer 1 

Utility truck 2 

Pickup truck 2 

Oil storage 1 

Water tank 1 

Supply yard 1 

Mine drainage treatment plant 

Exploration - 

Total direct 20,462 

Field indirect 409 

Total construction 20,872 

Engi neeri ng 41 7 

Overhead and administration 1,064 

Conti ngency 

Fee 

Estimated development cost 

Interest during development 

Gross estimate 44,269 

Credit for coal mined during development at $10 per ton 2 0,946 

Lane acquired at $2,500 per acre 

Net estimate 49,138,500 



~7F 
37 
93 

500 

312 

8 

63 

44 

100 
18 
12 
25 
25 
18 
37 

187 



22,354 
3,353 



25,707 
514 



26,221 
15,940 



42,161 
2,108 



23,323 
25,815 



500 
800 
000 
500 
800 
000 
000 
000 
000 
000 
000 
000 
800 
500 
500 



900 
300 



200 
400 
500 



100 
100 



200 
100 



300 
100 



400 
100 



500 
000 



500 
000 



26 



TABLE C-2. - Manning table, 3.18-MM-tpy mine 



Wages^ 
per day 



Cost 
per year 



Cost 
per ton 



Personnel 

Underground: 

Continuous miner operator... 

Loading machine operator 

Machine operator helper. 

Shuttle car operator , 

Roof bolter 

Bratticeman 

Util ity man 

Mechanic (section) , 

Suppl y motorman , 

Bel tman. , 

Trackman 

Wi reman , 

Mason (precision) , 

Pumper , 

Util ity crew , 

Roving mechanic , 

Fireboss (union) , 

Outside: 

Lampman , 

Front-end loader operator... 
Shop mechanic , 

Salary: 

Superintendent , 

General mine foreman 

Assistant mine foreman 

Section foreman 

Maintenance superintendent., 

General shop foreman , 

Mine maintenance foreman 

Chief mine engineer , 

Draftsman , 

Survey crew , 

Safety director , 

Safety inspector , 

Dust sampl er , 

Office manager , 

Timekeeper and bookkeeper.., 

Purchasing supervisor , 

Warehouseman , 

Total labor and supervision. 



Total 



42 
42 
42 
84 
84 
42 
42 
42 



420 
12 
27 
12 
12 
18 
3 
24 
12 
4 

JW 

3 

3 

12 



18 

1 
1 
3 
42 
1 
1 
3 
1 
1 
3 
1 
3 
3 
1 
1 
1 
4 



71 



633 



$55.00 
51.98 
51.98 
49.23 
55.00 
47.03 
49.23 
55.00 

47.58 
47.03 
47.03 
47.03 
49.23 
47.03 
49.23 
55.00 
55.00 



45.38 
47.85 
49.50 



$516,824 
488,918 
488,918 
927,019 
1,033,648 
443,180 
463,510 
516,824 



4,878,841 
128,074 
284,901 
126,904 
126,904 
198,648 

31,657 
264,863 
147,136 

73,832 



1,382,919 

30,568 

32,197 

133,144 



195,909 

30,000 
20,000 
48,000 
588,000 
21,800 
15,200 
45,000 
22,500 
9,200 
29,700 
19,800 
43,500 
31,500 
15,800 
11,000 
15,800 
39,600 



1.006.400 



7,464,100 



$1.53 



.44 



.06 



32 



2.35 



1 Figures in this column are for 
other shifts are reflected in 



the day shift. Shift differentials for 
the cost per year. 



27 



TABLE C-3. - Depreciation schedule, 3.18-MM-tpy mine 



Item 

Exploration 

Mine drainage treatment plant 

Supply yard 

Water tank 

Oil storage 

Pickup truck 

Util ity truck 

Bulldozer 

Forklift 

Front-end loader 

Powder and cap house 

Shop and warehouse 

Bathhouse, office, and lamp house 

Substation 

Bulk rock dust facility 

Concrete portal s 

Venti 1 ati on fan 

Site preparation 

Coal mine safety equipment 

Underground equipment 

Interim equipment replacement 

Subtotal 

Depreciation for field indirect, 
engineering, overhead and 
administration, contingency, 
fee, cost of development, and 
interest during development, 
less credit for coal mined 
at $10 per ton 



Total 



Straight-line 
depreciation, years 



20 
10 
10 
10 
10 
5 
5 
10 
10 
10 
10 
20 
20 
20 
10 
20 
20 
20 
5 
10 
20 



20 



Yearly 
dol 



charge, 
lars 



9 
3 
1 
2 
2 
2 
3 
10 
4 
6 

15 

25 

4 

3 

3 

6 

2 

81 

1,832 

308 



,800 
,900 
,500 
,500 
,400 
,600 
,000 
,400 
,300 
900 
,600 
,000 
,700 
,800 
,800 
,000 
,500 
,900 
,500 
,000 



2,331,500 



143,000 



12,474,500 



i$0.78 per ton. 



28 



TABLE C-4. - Power and water cost, 3.18-MM-tpy mine 



Number 

of 
units 


Operation 


Hp 
per 
unit 


Hp, 
total 
load 


Hr per 

day, full 

load 


KW, 
total 
load 


Total kW-hr 
requirement 


14 
14 
28 
14 


Continuous miner 

Loading machine 

Shuttle car 

Roof bol ter 


600 
160 
135 

50 
125 

30 

15 

15 
7.5 

30 

80 
200 
150 


8,400 

2,240 

3,780 

700 

1,750 

420 

210 

90 

60 

420 

480 

600 

750 

500 

500 


15 
15 
15 
18 
15 
18 
6 
15 
15 
12 
12 
15 
15 
24 

10 


6,266 

1,671 

2,820 

522 

1,305 

313 

156 

67 

45 

313 

358 

447 

560 

373 

373 


93,990 

25,065 

42,300 

9,396 


14 
14 
14 
6 
8 
14 


Ratio feeder 

Auxiliary fan 

l^antrip Jeep 

P^echanic Jeep 

Personnel Jeep 

Rock duster 


19,575 
5,634 

936 
1,005 

675 
3,756 


6 

3 

12 

1 


Supply motor 

42-inch conveyor 

36- inch conveyor 

Ventilation fan 

Extra for pumps, 
tools, lights, 
etc 


4,296 
6,705 
8,400 
8,952 

3,730 




Total 


234,415 



NOTE. - Power 



$0.02 x 234,415 x 220 = $1,031,400 r 3,178,600 
= $0.32 per ton. 
Water: 3,000 gal per unit per shift at $0.10 per M gal 
= 3,000 x 14 x 3 X 220 X 0.10 f 1,000 = $2,800. 



29 



TABLE C-5. - Estimated annual production cost, 3.18-MM-tp.y mine 



Direct cost : 
Production: 

Labor , 

Supervision, 



Maintenance: 

Labor 

Supervision, 



Operating supplies: 

Mining machine parts 

Lubrication and hydraulic oil 

Rock bolts and timber 

Rock dust 

Ventilation 

Bits 

Cables 

Mi seel 1 aneous 



Power 

Water. 

Payroll overhead (40 percent of payroll) 
Union welfare^ 



Indirect cost: 
15 percent of labor, supervision, 
and suppl i es 



Fixed cost: 
Taxes and insurance, 2 percent of 

mine cost 

Depreciation 



Total 



Annual cost 



$5,660,600 

924,400 

6,585,000 



797,100 

82,000 

879,100 



2,002,500 
794,700 
985,400 
413,200 
604,900 
381 ,400 
190,700 
476,800 

5,849,600 

1,031,400 

2,800 

2,985,600 

3,242,400 

1,997,100 



940,600 
2,474,500 
3,415,100 



25,988,100 



Cost per ton 



$1.78 

.29 

2.07 



.25 
.03 
.28 

.63 
.25 
.31 
.13 
.19 
.12 
.06 
.15 
1.84 

.32 



.94 
1.02 

.63 



.30 

.78 

1.08 



8.18 



^Effective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974. 



30 



TABLE C-6. - Estimated development cost^, 3.18-MM-tpy mine 



Item 



Total cost 


Cost per ton 


$5,906,800 


$2.82 


2,408,800 


1.15 


523,700 


.25 


2,346,000 


1.12 


2,178,400 


1.04 


1,214,900 


.58 


1,361,500 


.65 


15,940,100 


7.61 



Total labor and supervision 

Operating supplies , 

Power 

Payrol 1 overhead , 

Union welfare , 

Indirect cost 

Fixed cost , 

Total , 



1 Estimated development cost covers the period of time required to place 
all units in operation within the projected mining plan. 



NOTE. - Cost per ton = $7.61. 
Tonnage ^ 2,094,600. 
Credit for coal mined at 



per ton = $20,946,000. 



TABLE C-7. - Estimated working capital and total capital investment , 

3.18-MM-tpy mine 



Estimated working capital : 

Direct labor 3 months. 

Operating supplies 3 months. 

Payrol 1 overhead 3 months . 

Indirect cost 4 months. 

Fixed cost 0.5 percent of insurance base. 

Spare parts 

Miscellaneous 

Total working capital 



$1,866,000 

1,462,400 

746,400 

665,800 

235,200 

653,200 

86,300 

5,715,300 



Total estimated capital investment: 

Total mine cost (insurance, tax base) 47,030,400 

Interest during development 

Subtotal 

Worki ng capi tal 

Estimated capital investment 

Estimated deferred capital investment, 

Total capital investment and deferred investment.. 



2,108,100 
49,138,500 

5,715,300 

54,853,800 

26,164,500 

181,018,300 



iThis is an average cost of $25.48 per ton of annual production. 



31 



TABLE C-8. - Summary of discounted cash flow, 3.18-MM-tpy iiiine 









Present 


Present worth 


Present worth 








worth 


capital 


cash flow 




Capital 




factor at 


investment 


value 


Year 


investment 


Cash flow 


15 percent 


at 15 percent 


at 15 percent 


-1/2 


$21,941,500 


$-21,941,500 


1.07238 


$23,529,600 


$-23,529,600 





32,912,300 


-32,912,300 


1. 


32,912,300 


-32,912,300 


1 


308,000 


9,508,900 


.8696 


267,800 


8,268,900 


2 


308,000 


9,508,900 


.7561 


232,900 


7,189,700 


3 


308,000 


9,508,900 


.6575 


202,500 


6,252,100 


4 


308,000 


9,508,900 


.5718 


176,100 


5,437,200 


5 


747,500 


9,069,400 


.4972 


371,700 


4,509,300 


6 


308,000 


9,508,900 


.4323 


133,100 


4,110,700 


7 


308,000 


9,508,900 


.3759 


115,800 


3,574,400 


8 


308,000 


9,508,900 


.3269 


100,700 


3,108,500 


9 


308,000 


9,508,900 


.2843 


87,600 


2,703,400 


10 


19,433,500 


-9,616,600 


.2472 


4,804,000 


-2,377,200 


11 


308,000 


9,508,900 


.2149 


66,200 


2,043,500 


12 


308,000 


9,508,900 


.1869 


57,600 


1,777,200 


13 


308,000 


9,508,900 


.1625 


50,100 


1,545,200 


14 


308,000 


9,508,900 


.1413 


43,500 


1 ,343,600 


15 


747,500 


9,069,400 


.1229 


91,900 


1,114,600 


16 


308,000 


9,508,900 


.1069 


32,900 


1,016,500 


17 


308,000 


9,508,900 


.0929 


28,600 


883,400 


18 


308,000 


9,508,900 


.0808 


24,900 


768,300 


19 


308,000 


9,508,900 


.0703 


21,700 


668,500 


20 


-31,222,300 


41,039,200 


.0611 


-1,907,700 


2,507,500 




61,443,800 


3,400 



32 

TABLE C-9. - Discountfed cash flow, 3.18-MM-tpy mine 

15 percent - 20 years 

R = $61,443,800 - 6.2591 = $9,816,900 

less depreciation 2,474,500 

Depletion + net profit = 7,342,400 

Depletion = 10 percent of sales 
Federal income tax = net profit 
Depletion + net profit = cash flow - depreciation 

Sales = 1/0.55 (1/2 operating cost + cash flow - depreciation) 
= 1/0.55 (12,994,100 + 7,342,400 

Sal es $36 , 975, 500 

Operating cost 25,988,100 

Gross profit 10,987,400 

Depletion 3,697,600 

Taxable income 7,289,800 

Federal income tax 3,644,900 

Net profit. 3,644,900 

Annual cash flow = net profit + depreciation + depletion 
= $3,644,900 + $2,474,500 + $3,697,600 
= $9,817,000 

Selling price per ton = $36,975,500 t 3,178,600 = $11.63 

lUmform series present worth factor. 



33 



APPENDIX D.— 4.99-MM-TPY MINE 



TABLE D-1 . - Capital investment summary, 4.99-MM-tpy mine 

Item Quantity Total cost~ 

Continuous miner 26 $7,841,600 

Loading machine 26 2,095,600 

Shuttle car 52 3,853,200 

Roof bolter 26 1,385,800 

Ratio feeder 26 1,170,000 

Auxiliary fan 26 98,800 

Mantrip Jeep 26 455,000 

Mechanic Jeep 10 138,000 

Personnel Jeep 10 125,000 

Trickle rock duster 26 114,400 

Triple duty rock duster 15 580,500 

Supply motor 8 250,400 

Supply car 100 310,000 

42-inch rope-type mainline belt conveyor 9,000 ft 720,000 

36-inch rope-type secondary and panel belts.. 60,000 ft 4,020,000 

Mainline belt power center (300 kV-A) 6 112,800 

Section belt power center (150 kV-A) 16 200,000 

Section power center (1,000 kV-A) 26 748,800 

Section rectifier (200 kW) 26 65,000 

Section switch house 26 244,400 

Sectional izing switch house ^ 12 112,800 

HV cable (300 MCM AL) 21,000 ft 210,000 

PLM coupler 22 22,000 

Section cable and coupler - 136,500 

Rectifier for track haulage 5 125,000 

Trolley wire 69,000 ft 216,000 

Track (60-1 b) 69,000 ft 690,000 

Fresh water 1 ine 69,000 ft 258,800 

Pumps and lines - 44,000 

Telephone (page phones) - 18,000 

Conveyor fire protection - 38,000 

Automatic controls and alarms - 125,000 

Scoop tractor 26 91 0,000 

Battery charger 26 96,200 

All service mask 36 3,600 

Breathing apparatus • 50 40,000 

Self rescuer 950 35,700 

Stretcher set 40 8 ,000 

Safety light 600 26,400 

Methanometer 600 240,000 

Fire chemical car 16 57,000 

Lamp (including accessories) 950 49,400 

Dust sampler 75 "^^'^nn 

Site preparation ~ 75,000 

Ventilation fan (dual) - 120,000 



34 
TABLE D-1 . - Capital investment summary, 4.99-MM-tpy mine - Continued 



Item 



Quantity Total cost 



Concrete portal , 

Bulk rock dust facility , 

Substation and distribution , 

Bathhouse, office, and lamp house, 

Shop and warehouse , 

Powder and cap house , 

Front-end loader 

Forklift 

Bulldozer , 

Utility truck 

Pickup truck , 

Oil storage 

Water tank 

Supply yard 

Mine drainage treatment plant 

Exploration 

Total direct 

Field indirect , 

Total construction , 

Engineering , 

Overhead and administration 



Contingency. 
Fee 



Estimated development cost. 



Interest during development.. 

Gross estimate , 

Credit for coal mined during development at $10 per ton, 

Land acquired at $2,500 per acre 





75. 


,000 




56 


,300 




110 


,000 




687 


,500 




437. 


,500 




11 


,300 




63. 


,000 




44 


,000 




100 


,000 




18 


,000 




18 


,000 




38 


,000 




25 


,000 




25 


,000 




37 


,500 




312 


,500 


30 


,275 


,300 




605 


,500 


30 


,880 


,800 




617 


,600 


1 


,574 


,900 


33 


,073 


,300 


4 


,961 


,000 


38 


,034 


,300 




760 


,700 


38 


,795 


,000 


23 


,177 


,000 


61 


,972 


,000 


3 


,098. 


,600 


65 


,070 


,600 


30 


,528. 


000 


34 


,542 


,600 


40 


,570 


,000 



Net estimate, 



75,112,600 



35 



TABLE D-2. - Manning table. 4.99-MM-tpy mine 



Personnel 

Underground: 

Continuous miner operator.... 

Loading machine operator 

Machine operator helper 

ShuttJe car operator 

Roof bol ter 

Bratti ceman , 

Utility man 

Mechanic (section) 

Supply motorman^ 

Beltman 

Trackman 

Wi reman 

Mason (precision) 

Pumper 

Util ity crew 

Roving mechanic 

Fireboss (union) 

Outside: 

Lampman.. 

Front-end loader operator,... 
Shop mechanic 

Salary: 

Superintendent 

Assistant superintendent 

General mine foreman 

Assistant mine foreman 

Section foreman 

Maintenance superintendent... 

General shop foreman -. 

Mine maintenance foreman 

Chief mine engineer 

Draftsman 

Survey crew 

Safety di rector 

Safety inspector 

Dust sampl er 

Of f i ce manager 

Timekeeper and bookkeeper.... 

Purchasing supervisor 

Warehouseman 

Total labor and supervision 



Total 



66 

66 

66 

132 

132 

66 

66 

66 

660 

24 

45 

18 

18 

30 

6 

36 

18 

6 



201 

6 
3 



27 

1 
2 
2 
3 
66 
1 
2 
3 
1 
2 
6 
1 
3 
6 
1 
2 
1 
6 



109 



997 



Wages 1 
per day 



$55.00 
51.98 
51.98 
49.23 
55.00 
47.03 
49.23 
55.00 

47.58 
47.03 
47.03 
47.03 
49.23 
47.03 
49.23 
55.00 
55.00 



45.38 
47.85 
49.50 



Cost 
per year 



$812 
768 
768 
1 ,456 
1 ,624 
696 
7 28 
812 



77367 
256 
474 
189 
189 
331 

63 
397 
220 

73 



2,197 

61 

32 

199 



293 

30 
48 
40 
48 
924 
21 
30 
45 
22 
18 
59 
19 
43 
63 
15 
22 
15 
59 



1,527 



11,685 



144 
750 
750 
760 
288 
427 
380 
144 



643 
150 
837 
936 
936 
078 
311 
293 
704 
832 



077 

136 
197 
716 



049 

000 
400 
000 
000 
000 
800 
400 
000 
500 
400 
400 
800 
500 
000 
800 
000 
800 
400 



200 



000 



Cost 
per ton 



$1.53 



.44 



06 



.31 



2.34 



1 Figures in this column are for the diay 
oth<,r shifts are reflected in the fina 



shift. Shift differenti 
column. 



als for 



36 



TABLE D-3. - Depr'eciation schedule, 4.99-MM-tpy mine 



Item 

Exploration 

Mine drainage treatment plant 

Supply yard 

Water tank 

Oi 1 storage 

Pickup truck 

Utility truck 

Bulldozer 

Forklift , 

Front-end 1 oader 

Powder and cap house 

Shop and warehouse 

Bathhouse, office, and lamp house, 

Substation ,. , 

Bulk rock dust facility 

Concrete portal s , 

Ventilation fan , 

Site preparation. 

Coal mine safety equipment 

Underground equipment 

Interim equipment replacement 

Subtotal 

Depreciation for field indir^ect, 
engineering, overhead and 
administration, contingency, 
fee, cost of development, and 
interest during development, 
less credit for coal mined 
at $1 per ton 



Straight-line 
depreciation, years 



Yearly 
doll 



charge, 
ars 



Total 




157 
3, 
2, 
2, 
3, 
3, 
3, 

10, 
4, 
6, 
1, 

21, 

34, 

5, 

5, 

3, 

6, 

3, 

130, 

2,736, 

456, 



600 
800 
500 
500 
800 
600 
600 
000 
400 
300 
100 
900 
400 
500 
600 
800 
000 
800 
600 
900 
000 



3,461,700 



213,400 



13,675,100 



i$0.74 per ton. 



37 



TABLE D-4. - Power and water cost, 4.99-MM-tpy mine 



Number 






Hp, 


Hp per 


KW, 




of 




Hp per 


total 


day, full 


total 


Total kW-hr 


units 


OjDeration 


unit 


load 


load 


load 


requirement 


22 


Continuous miner. . 


600 


13,200 


15 


9,847 


147,705 


22 


Loading machine.. . 


160 


3,520 


15 


2,626 


39,390 


44 


Shuttle car 


135 


5,940 


15 


4,431 


66,465 


22 


Roof bolter 


50 


1,100 


18 


821 


14,778 


22 


Ratio feeder 


125 


2,750 


15 


2,052 


30,780 


22 


Auxiliary fan 


30 


660 


18 


492 


8,856 


22 


Mantrip Jeep 


15 


330 


6 


246 


1,476 


10 


Mechanic Jeep 


15 


150 


15 


112 


1,680 


10 


Personnel Jeep 


7.5 


75 


15 


56 


840 


22 


Rock duster 


30 


660 


12 


492 


5,904 


8 


Supply motor 


80 


640 


12 


477 


5,724 


3 


42-inch conveyor. . 


300 


900 


15 


671 


10,065 


20 


36-inch conveyor. . 


150 


1,200 


15 


895 


13,425 


1 


Ventilation fan... 
Extra for pumps, 
tools, lights. 




500 


24 


373 


8,952 




etc 




700 


10 


522 


5,220 




Total 


361,260 



NOTE. - Power: 



Water: 



$0.02 x 361,260 x 220 = $1,589,500 f 4,994,900 
= $0.32 per ton. 

3,000 gal per unit per shift at $0.10 per M gal 
= 3,000 X 22 X 3 x 220 X 0.10 t 1,000 = $4,400. 



38 



TABLE D-5. - Estimated annual production cost, 4.99-MM-tpy mine 



Annual cost Cost per ton 



Direct cost: 
Production: 

Labor , 

Supervision, 



Maintenance: 

Labor 

Supervision, 



Operating supplies: 

Mining machine parts 

Lubrication and hydraulic oil 

Roof bolts and timber 

Rock dust 

Ventilation 

Bits 

Cables 

Mi seel 1 aneous 



Power 

Water 

Payroll overhead (40 percent of payroll) 
Union welfare^ 



Indirect cost: 
15 percent of labor, supervision, 
and suppl i es 



Fixed cost: 
Taxes and insurance, 2 percent of 

mine cost 

Depreciation 



Total 



$8,925,200 


$1.79 


1,430,000 


.29 


10,3,55,200 


2.08 


1,232,600 


.25 


97,200 


.02 


1,329,800 


.27 


3,150,000 


.63 


1,250,000 


.25 


1,550,000 


.31 


650,000 


.13 


950,000 


.19 


600,000 


.12 


300,000 


.06 


750,000 


.15 


9,200,000 


1.84 


1,589,500 


.32 


4,400 




4,674,000 


.93 


5,099,200 


1.02 


3,132,800 


.63 


1,440,300 


.29 


3,675,100 


.74 


5,115,400 


1.03 


40,500,300 


8.12 



^Effective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974. 



39 



TABLE D-6. - Estimated development cost^, 4.99-MM-tpy mine 



Item 



Total cost 



$8,615,200 
3,510,700 
763,200 
3,419,100 
3,113,900 
1,770,600 
1 , 984,300 



Cost per ton 



$2.82 

1.15 

.25 

1.12 

1.02 

.58 

.65 



Total labor and supervision, 

Operating supplies 

Power , 

Payrol 1 overhead 

Union wel fare , 

Indirect cost , 

Fixed cost , 

Total , 



23,177,000 



7.59 



1 Estimated development cost covers the period of time required to place 
all units in operation within the projected mining plan. 

NOTE. - Cost per ton = $7.59. 
Tonnage = 3,052,800. 
Credit for coal mined at $10 per ton = $30,528,000. 



TABLE D-7. - Estimated working capital and total capital investment , 

4.99-MM-tpy mine 

Estimated working capital: 

Direct labor 3 months... fl;2,921,300 

Operating supplies 3 months... 2,300,000 

Payroll overhead 3 months... 1,168,500 

Indirect cost 4 months... 1,044,300 

Fixed cost 0.5 percent of insurance base... 360,100 

Spare parts 1 ,005,700 

Mi seel 1 aneous 115,000 

Total working capital = .. 8,914,900 

lotal estimated capital investment. 

Total mine cost (insurance, tax base) 72,014,000 

Interest during development 3,098,600 

Subtotal 75,1 1 2, 600 

Working capital 8»914,900 

Estimated capital investment 84,027,500 

Estimated deferred capital investment 38,956,000 

Total capital investment and deferred investment ^122,983,500 

iThis is an average cost of $24.65 per ton of annual production. 






40 



TABLE D-8. - Summary of discounted cash flow, 4.99-MM-tpy mine 









Present 


Present worth 


Present worth 








worth 


capital 


cash flow 




Capital 




factor at 


investment 


value 


Year 


investment 


Cash flow 


15 percent 


at 15 percent 


at 15 percent 


-1 


$33,611,000 


$-33,611,000 


1.15 


$38,652,700 


$-38,652,700 





50,416,500 


50,416,500 


1. 


50,416,500 


-50,416,500 


1 


456,000 


14,939,700 


.8696 


396,500 


12,991,600 


2 


456,000 


14,939,700 


.7561 


344,800 


11,295,900 


3 


456,000 


14,939,700 


.6575 


299,800 


9,822,900 


4 


456,000 


14,939,700 


.5718 


260,700 


8,542,500 


5 


1,145,000 


14,250,700 


.4972 


569,300 


7,085,400 


6 


456,000 


14,939,700 


.4323 


197,100 


6,458,400 


7 


456,000 


14,939,700 


.3759 


171,400 


5,615,800 


8 


456,000 


14,939,700 


.3269 


149,100 


4,883,800 


9 


456,000 


14,939,700 


.2843 


129,600 


4,247,400 


10 


28,914,000 


-13,518,300 


.2472 


7,147,500 


-3,341,700 


n 


456,000 


14,939,700 


.2149 


98,000 


3,210,500 


12 


456,000 


14,939,700 


.1869 


85,200 


2,792,200 


13 


456,000 


14,939,700 


.1625 


74,100 


2,427,700 


14 


456,000 


14,939,700 


.1413 


64,400 


2,111,000 


15 


1,145,000 


14,250,700 


.1229 


140,700 


1,751,400 


16 


456,000 


14,939,700 


.1069 


48,700 


1,597,100 


17 


456,000 


14,939,700 


.0929 


42,400 


1,387,900 


18 


456,000 


14,939,700 


.0808 


36,800 


1,207,100 


19 


456,000 


14,939,700 


.0703 


32,100 


1,050,300 


20 


-49,028,900 


64,424,600 


.0611 


-2,995,700 


3,936,300 




96,361,700 


4,300 



3477-27d 
Xot«0 



41 

TABLE D-9. - Discounted cash flow, 4.99-MM-tpy mine 

15 percent - 20 years 

R = $96,361,700 i 6.2591 = $15,395,700 

less depreciation 3,675,100 

Depletion + net profit = 11,720,600 

Depletion = 10 percent of sales 
Federal income tax = net profit 
Depletion + net profit = cash flow - depreciation 

Sales = 1/0.55 (1/2 operating cost + cash flow - depreciation) 
= 1/0.55(20,250,150+11,720,600) 

Sales $58,128,600 

Operating cost 40,500,300 

Gross profit 17,628,300 

Depletion 5,812,900 

Taxable income 11,815,400 

Federal income tax 5,907,700 

Net profit 5,907,700 

Annual cash flow = net profit + depletion + depreciation 
= $5,907,700 + $5,812,900 +$3,675,100 
= $15,395,700 

Selling price per ton = $58,128,600 r 4,994,900 = $11.64 

-^Uniform series present worth factor. 



* U.S. Government Office: d^j7^^6 22-192/21 6 R3-I 








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